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Sam’s Club comes out with new workforce compensation
Retailer launches plan focused on providing more predictable financial futures for hourly associates
Supermarket News Staff
September 17, 2024
2 Min Read
Under Sam’s Club’s new plan, associate hourly wages will progress faster in their pay range, expanding the increase to between 3% and 6% based on years of service. Sam's Club
Sam’s Club today unveiled a reimagined approach to its workforce compensation, announcing a new plan that accelerates pay for nearly 100,000 frontline associates and provides a roadmap for them to plan and pursue more predictable, longer-term financial futures.
In an increasingly competitive retail landscape, attracting, hiring and, more importantly, retaining quality talent has become a true competitive advantage. Good jobs and fulfilling careers help ease the pressure many hourly associates face in balancing long-term personal finances with the responsibility to be brand ambassadors on the frontlines of customer experiences. More engaged workers are more productive, provide better service, and are more likely to stay, especially in retail, where turnover in 2022 averaged 60%.
Recognizing this, under Sam’s Club’s new plan, associate hourly wages will progress faster in their pay range, expanding the increase to between 3% and 6% based on years of service. The plan sets predictable pay increase milestones to give associates a longer-term perspective on their financial futures. With these new compensation investments, the average hourly rate for Sam’s Club associates is anticipated to be above $19, with the potential to earn thousands of dollars annually in bonuses. In the last five years alone, Sam’s Club’s average hourly wage has increased nearly 30%.
"Our new approach is one step in a series of investments we’ve made in our people over the last several years, all designed to provide more meaningful jobs and build successful teams,” said Chris Nicholas, president and CEO of Sam’s Club, in a LinkedIn post.
Pay is only one component of Sam’s Club’s commitment to associates. Over the same period, the company has focused on career growth and creating more pathways of opportunity for associates by providing greater security, flexibility, and convenience when and how they work. This includes:
The implementation of block schedules for full-time associates with consistent weekly schedules
An increase in full-time associates by 11%
The introduction of new technology such as Me@Sams, a mobile app that allows associates to navigate their pay, discounts, learning opportunities and benefits
The creation of workgroups to broaden departmental cross-training and simplifying the types of roles by more than 60%
The new pay plan for frontline associates goes into effect Nov. 2, 2024.
